Jakarta, Indonesia, June 6, 2022 / PRNewswire /-Taxation regulations for crypto asset transactions are officially issued by the government. The tax provisions for crypto asset transactions are regulated by the Minister of Finance Regulation No. 68 (“PMK68 / 2022”) of 2022, which is a derivative of the Tax Law Harmonization Act (“UU HPP”).The regulation imposes a VAT rate of 1% from the VAT rate multiplied by the value of the crypto asset transaction, while the regulation applies 0.1% to all revenues earned from the sale of crypto assets. Because I also imposed a (final) income tax at the tax rate of May 1, 2022..
However, the tax enforcement on cryptocurrency transactions set by PMK 68/2022 is still under debate, especially for business people. Therefore, the Indonesiasi Blockchain Indonesia (ABI), which represents all future crypto asset exchanges registered under CoFTRA, responded as follows regarding the implementation of crypto asset tax.
Given that future crypto asset exchanges will need to prepare a technical process for tax collection and socialize it to taxpayer investors, the tax enforcement date for crypto assets seems too early.
Based on the 2018 Ministerial of Trade Regulation No. 99 on “ General Policy on Implementation of Crypto Asset Futures Transactions”, crypto assets are stipulated as commodities subject to futures contracts, so it is necessary to clarify the tax rate to be levied. I have. Futures Exchange (Article 1). However, there is no clear regulatory basis for VAT rates on futures products with classification of intangible assets such as crypto assets that cannot be treated like other futures products. As a general rule, the 2.5% income tax rate (“PP17 / 2009”) on futures products imposed under Government Regulation No. 17 of 2009 on Derivative Transaction Revenues in the form of future contracts traded on exchanges is taxable. What must be considered has been revoked by Government Regulation No. 31 of 2011 (“PP 31/2011”), and so far there have been no revisions and / or updates to Government Regulations on Income. Especially the tax rate on futures products.
On the other hand, the tax rate levied can undermine the competitiveness of domestic business actors, so potential domestic customers may refuse to trade using foreign crypto exchanges that are not supervised by CoFTRA. Impact on the domestic crypto asset industry (causing capital outflows), especially for registered and CoFTRA regulated business actors. Another thing to consider is the crypto asset ecosystem built by the government, including futures exchanges, clearing houses and vaults. This means that additional charges will be applied to crypto asset exchanges, not foreign crypto exchanges.
Asih Karnengsih, President of the ABI, said: While contributing to state revenues, we are currently concerned about income tax and VAT rates that need to be strengthened, while paying more attention to maintaining the competitiveness of domestic operators. It is the basis...“”
In a press release on Tuesday (March 29, 2022), Trade Deputy Minister Jerry Sambuaga said: Interesting time For the development of crypto asset transactions Indonesia..Until then February 2022Transaction value increased by 14.5% compared to the same period in 2021.. “ From this data People can see Rapid development of crypto asset transactions Indonesia.. It’s a shame if this development is hampered, or if the tax compliance level of cryptocurrency transactions can be reduced as a result of taxation without further investigation. To encourage more acceptable tax laws for all stakeholders, the ABI is also preparing a detailed investigation of crypto property taxes.
Source Asosiasi Blockchain Indonesia